Lesson / WY-04-18
The Automatic Reaction (AR) is the first important natural downward move away from BC or the principal stopping high after demand temporarily weakens. It helps establish a candidate lower range boundary and shows sellers first moving price clearly away from high ground.
Course content is for learning and research only. It is not investment advice.
Read the Chapter ↗Timestamps
8 lessons · Chapter contents
01The Relationship Between Distribution Phases and Events↗02Phase A: Has the Advance Stopped?↗03Preliminary Supply: PSY↗04Buying Climax: BC↗05Automatic Reaction: AR↗06Secondary Test: ST↗07Establishing and Revising Preliminary Boundaries↗08Climactic Stopping and Gradual Loss of Upward Effectiveness↗Observe the market: start with context and place price within its structure.
Understand structure: compare supply and demand, and let evidence support or revise your hypothesis.
Form a view: define risk limits and know when to reassess.
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Phases B and C: Upthrusts, UTAD, and Demand Tests
Phases D and E: SOW, LPSY, and the Developing Decline
